Ctrl K
Operating cash flow exceeded net income by 41% in Q2 2026, with free cash flow surging to $698.9M (14.3% FCF margin), while $1.5B was deployed on share repurchases, underscoring strong cash conversion and aggressive capital returns.
O'Reilly Automotive, Inc. (ORLY) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 3.29B | 2.76B | 3.05B | 3.03B | 3.15B | 3.21B | 2.84B | 1.71B | 1.73B | 1.4B | 1.51B | 1.35B | 1.19B | 908.03M | 1.25B | 1.12B | 703.69M | 285.2M | 298.54M | 299.42M | 185.93M | 213.32M | 226.54M | 168.84M | 104.53M | 50.03M | 5.83M | 29.7M | -19.1M | 17.9M | 4.9M |
| Operating CF Margin % | - | 15.53% | 18.25% | 19.19% | 21.85% | 24.07% | 24.44% | 16.83% | 18.12% | 15.64% | 17.58% | 16.89% | 16.5% | 13.66% | 20.24% | 19.33% | 13.04% | 5.88% | 8.35% | 11.87% | 8.14% | 10.43% | 13.16% | 11.17% | 7.96% | 4.58% | 0.66% | 3.94% | -3.1% | 5.66% | 1.89% |
| Operating CF Growth % | 51.08% | -9.43% | 0.51% | -3.63% | -1.84% | 13.07% | 66.03% | -1.1% | 23.07% | -7.08% | 12.28% | 13.03% | 31.1% | -27.45% | 11.85% | 59.02% | 146.73% | -4.47% | -0.29% | 61.04% | -12.84% | -5.83% | 34.18% | 61.51% | 108.94% | 757.84% | -80.36% | 255.5% | -206.7% | 265.31% | 444.44% |
| Net Income | 2.65B | 2.54B | 2.39B | 2.35B | 2.17B | 2.16B | 1.75B | 1.39B | 1.32B | 1.13B | 1.04B | 931.22M | 778.18M | 670.29M | 585.75M | 507.67M | 419.37M | 307.5M | 186.23M | 193.99M | 178.09M | 164.27M | 139.57M | 100.09M | 81.99M | 66.35M | 51.71M | 45.6M | 30.8M | 23.1M | 19M |
| Depreciation & Amortization | 537.71M | 511.23M | 461.89M | 409.06M | 357.93M | 328.22M | 314.63M | 270.88M | 258.94M | 233.84M | 217.87M | 210.26M | 194.21M | 183.18M | 177.11M | 165.88M | 161.44M | 148.18M | 113M | 78.94M | 64.94M | 57.23M | 54.33M | 42.37M | 36.91M | 30.54M | 24.81M | 17.9M | 12.2M | 8.3M | 6.1M |
| Stock-Based Compensation | 33.81M | 35.12M | 28.93M | 27.51M | 26.46M | 24.66M | 22.75M | 21.92M | 20.18M | 19.4M | 18.86M | 21.9M | 23.09M | 21.72M | 22.03M | 20.58M | 16.97M | 21.41M | 13.55M | 0 | 0 | 7.84M | 5.07M | 4.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 26.64M | -37.54M | -50.24M | 48.23M | 69.58M | 20.38M | 12.38M | 21.16M | 20.16M | -4.59M | 10.39M | -22.65M | 1.49M | 1.92M | 8.16M | 54.12M | 99.26M | 50.38M | 11.03M | -6.34M | -1.02M | -671K | 7.64M | 13.8M | 5.67M | 6.37M | 3.25M | 5.5M | 7.6M | -1M | 1.5M |
| Other Non-Cash Items | -47.61M | 18.45M | 12.97M | 7.07M | 5.59M | 6.52M | 9.27M | 11.45M | 13.37M | 14.66M | 8.88M | 8.95M | -41.47M | -21.35M | -29.38M | 8.73M | -15.48M | 6.28M | 11.96M | 17.78M | 12.84M | 12.63M | -14.38M | 7.68M | 7.41M | 11.58M | 5.08M | 7.2M | 2.5M | 2.2M | 1.4M |
| Working Capital Changes | 88.5M | -303.46M | 209.34M | 195.63M | 516.04M | 662.85M | 725.27M | -7.96M | 90.43M | 6.57M | 217.02M | 195.82M | 234.93M | 52.27M | 487.89M | 362.01M | 22.12M | -248.55M | -37.23M | 15.04M | -68.92M | -27.97M | 34.32M | 870K | -27.44M | -64.82M | -79.01M | -46.5M | -72.2M | -14.7M | -23.1M |
| Change in Receivables | -36.8M | -35.51M | 30.5M | -35.54M | -75.86M | -47.43M | -20.52M | -15.58M | 18.14M | -27.74M | -38.55M | -23.86M | -19.27M | -16.94M | 4.4M | -21.22M | -21.75M | -9.71M | -7.44M | -8.55M | -9.43M | -8.97M | -11.64M | -9.11M | -10.01M | -11.34M | -10.64M | -1.4M | -5.8M | -1.8M | -2.4M |
| Change in Inventory | -562.95M | -604.54M | -403.89M | -288.32M | -669.05M | -32.63M | -198.86M | -239.91M | -163.37M | -231.8M | -119.27M | -76.23M | -179.74M | -96.88M | -276.9M | 37.74M | -110.27M | -339.74M | -142.33M | -68.82M | -91.43M | -62.16M | -66.38M | -19.65M | -56.3M | -35.12M | -78.14M | -47.9M | -53.3M | -27.9M | -24.9M |
| Change in Payables | 530.15M | 576.41M | 421.36M | 207.06M | 1.18B | 510.91M | 580.61M | 213.42M | 177.68M | 253.26M | 322.43M | 191.06M | 360.65M | 127.18M | 645.71M | 383.63M | 82.57M | 79.82M | 50.41M | 0 | 0 | 43.16M | 94.59M | 29.76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.11B | -1.15B | -1.17B | -995.94M | -739.99M | -615.62M | -614.89M | -796.75M | -534.3M | -464.22M | -529.1M | -407.19M | -423.4M | -388.75M | -317.41M | -319.65M | -351.28M | -410.66M | -367.6M | -300.32M | -225.2M | -269.07M | -171.99M | -130.56M | -105.39M | -77.85M | -40.52M | -77.8M | -100.8M | -37.7M | -11.2M |
| Capital Expenditures | -1.13B | -1.17B | -1.02B | -1.01B | -563.34M | -442.85M | -465.58M | -628.06M | -504.27M | -465.94M | -476.34M | -414.02M | -429.99M | -395.88M | -300.72M | -328.32M | -365.42M | -414.78M | -341.68M | -282.65M | -228.87M | -205.16M | -176.27M | -136.5M | -102.26M | -68.52M | -81.99M | -86M | -107M | -37.2M | -34.5M |
| CapEx % of Revenue | 6.1% | 6.57% | 6.13% | 6.36% | 3.91% | 3.32% | 4.01% | 6.19% | 5.29% | 5.19% | 5.54% | 5.2% | 5.96% | 5.95% | 4.86% | 5.67% | 6.77% | 8.56% | 9.55% | 11.21% | 10.02% | 10.03% | 10.24% | 9.03% | 7.79% | 6.27% | 9.21% | 11.4% | 17.36% | 11.76% | 13.31% |
| Acquisitions | -19.85M | -14.39M | 16.35M | 17.69M | 14.8M | 9.49M | 15.77M | 7.12M | 4.78M | 4.46M | 5.12M | 2.76M | 2.88M | 1.73M | 3.04M | 2.71M | 2.12M | 4.29M | -32.52M | 2.33M | 875K | -61.21M | 1.65M | 0 | 0 | -20.54M | 0 | 0 | 0 | 0 | 800K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 45.99M | 30.84M | -161.26M | -3.21M | -3.16M | -1.93M | -975K | -142.03M | -34.82M | -2.75M | -57.87M | 4.07M | 3.71M | 5.4M | -19.73M | 5.95M | 12.02M | -170K | 6.6M | 1.73M | 2.79M | -2.7M | 2.63M | 5.94M | -3.13M | 11.21M | 41.47M | 8.2M | 5.7M | -500K | 100K |
| Cash from Financing | -2.12B | -1.55B | -2.03B | -1.87B | -2.66B | -2.69B | -1.8B | -902.81M | -1.21B | -1.04B | -951.32M | -1.07B | -747.79M | -536.08M | -1.05B | -467.51M | -349.62M | 121.09M | 52.8M | 18.55M | 37.79M | 18.11M | -6.62M | -46.52M | 15.14M | 33.65M | 34.1M | 56.1M | 119.3M | 20.9M | 4.7M |
| Debt Issued (Net) | 1.19B | 484.79M | -52.77M | 1.19B | 540.72M | -300M | 228.59M | 469.96M | 435.74M | 1.09B | 495.04M | -25K | -72K | 296.79M | 295.57M | 428.58M | -431.33M | 50.95M | 36.02M | -10.01M | 8.76M | -602K | -20.99M | -70.68M | 7.88M | 16.55M | 28.74M | -76.5M | 116.2M | 19.4M | 2.8M |
| Equity Issued (Net) | -3.28B | -2.02B | -1.95B | -3.06B | -3.2B | -2.39B | -2.02B | -1.37B | -1.64B | -2.13B | -1.45B | -1.07B | -796.86M | -863.68M | -1.38B | -919.07M | 63.12M | 59.51M | 21.78M | 21.73M | 20.49M | 18.71M | 14.37M | 24.16M | 7.26M | 17.1M | 5.35M | 132.6M | 3.1M | 1.5M | 1.9M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -3.35B | -2.1B | -2.08B | -3.15B | -3.28B | -2.48B | -2.09B | -1.43B | -1.71B | -2.17B | -1.51B | -1.14B | -866.48M | -933.03M | -1.45B | -976.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -25.64M | -17.45M | -29.4M | -354K | -350K | -3.73M | -253K | -191K | -2.16M | -156K | -4.68M | -934K | 49.15M | 30.81M | 38.63M | 22.98M | 18.59M | 10.63M | -4.99M | 6.83M | 8.54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 63.57M | 63.55M | -148.89M | 170.55M | -253.53M | -103.53M | 425.23M | 9.09M | -15.03M | -100.25M | 30.3M | -134.26M | 19.24M | -16.81M | -113.42M | 331.83M | 2.79M | -4.37M | -16.25M | 17.65M | -1.48M | -37.64M | 47.93M | -8.24M | 14.29M | 5.84M | -587K | 8.1M | -600K | 1.1M | -1.6M |
| Free Cash Flow | 2.16B | 1.59B | 2.03B | 2.03B | 2.58B | 2.76B | 2.37B | 1.08B | 1.22B | 937.75M | 1.03B | 931.47M | 760.44M | 512.14M | 950.84M | 790.67M | 338.27M | -129.58M | -43.14M | 16.76M | -42.94M | 8.16M | 53.05M | 32.34M | 2.28M | -18.49M | -76.16M | -56.3M | -126.1M | -19.3M | -29.6M |
| FCF Margin % | 11.61% | 8.96% | 12.13% | 12.82% | 17.94% | 20.74% | 20.43% | 10.64% | 12.83% | 10.45% | 12.04% | 11.69% | 10.54% | 7.7% | 15.38% | 13.66% | 6.27% | -2.67% | -1.21% | 0.66% | -1.88% | 0.4% | 3.08% | 2.14% | 0.17% | -1.69% | -8.55% | -7.47% | -20.46% | -6.1% | -11.42% |
| FCF Growth % | 21.68% | -21.37% | -0.08% | -21.55% | -6.49% | 16.59% | 119.45% | -11.68% | 30.45% | -9.34% | 11.05% | 22.49% | 48.48% | -46.14% | 20.26% | 133.74% | 361.05% | -200.39% | -357.33% | 139.04% | -626.07% | -84.61% | 64.04% | 1320.87% | 112.31% | 75.72% | -35.27% | 55.35% | -553.37% | 34.8% | -6.86% |
| FCF per Share | 2.60 | 1.86 | 2.42 | 2.33 | 2.79 | 2.78 | 2.23 | 0.97 | 1.04 | 0.73 | 0.75 | 0.64 | 0.50 | 0.32 | 0.54 | 0.40 | 0.17 | -0.07 | -0.02 | 0.01 | -0.03 | 0.01 | 0.03 | 0.02 | 0.00 | -0.01 | -0.05 | -0.04 | -0.10 | -0.02 | -0.02 |
| FCF Conversion (FCF/Net Income) | 0.81x | 1.09x | 1.28x | 1.29x | 1.45x | 1.48x | 1.62x | 1.23x | 1.30x | 1.24x | 1.46x | 1.44x | 1.53x | 1.35x | 2.14x | 2.20x | 1.68x | 0.93x | 1.60x | 1.54x | 1.04x | 1.30x | 1.62x | 1.69x | 1.27x | 0.75x | 0.11x | 0.65x | -0.62x | 0.77x | 0.26x |
| Interest Paid | -66.83M | 226.75M | 209.09M | 189.61M | 155.85M | 144.29M | 159.72M | 134.63M | 117.94M | 77.77M | 63.65M | 55.06M | 51.2M | 46.76M | 34.66M | 13.35M | 31.21M | 36.88M | 17.82M | - | - | 5.06M | 4.96M | 6.86M | - | - | - | - | - | - | - |
| Taxes Paid | -374.96M | 1.07B | 640.43M | 315.06M | 415.17M | 450.94M | 305.09M | 394.93M | 311.38M | 496.73M | 569.68M | 485.82M | 416.46M | 362.6M | 274.64M | 252.77M | 154.15M | 130.72M | 74.23M | - | - | 98.44M | 55.14M | 43.01M | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ORLY stock.
O'Reilly Automotive, Inc. (ORLY) generated $2.76B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
O'Reilly Automotive, Inc. (ORLY) generated $1.59B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
O'Reilly Automotive, Inc. (ORLY) spent $1.17B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, O'Reilly Automotive, Inc. (ORLY) spent $2.10B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Wage inflation compressing margins
Metrics are mathematically derived from official filings.
Cash Conversion Remains Strong
ORLY's operating cash flow exceeded net income by 41% in Q2 2026, with OCF/NI at 1.41, indicating high earnings quality, as per the latest quarterly report.
The consistent OCF/NI ratio above 1.0 across the last ten quarters, except for a slight dip in Q3 2025, suggests that reported earnings are well-backed by cash generation. The positive working capital changes in recent quarters, particularly $124.6M in Q2 2026, further support the quality of earnings, as they reflect efficient management of receivables and payables.
FCF Momentum Accelerates
Free cash flow surged to $698.9M in Q2 2026, up from $456.1M a year earlier, with FCF margin expanding to 14.3%, based on reported figures.
The sequential improvement in FCF from $364.5M in Q4 2025 to $788.5M in Q1 2026 and $698.9M in Q2 2026 indicates a robust trajectory, outpacing net income growth. This suggests that the company's operational efficiency and working capital management are translating into strong cash generation, which is critical for funding its aggressive buyback program.
Capital Intensity Remains Moderate
CapEx as a percentage of revenue averaged 6.3% in Q2 2026, consistent with prior quarters, indicating a stable investment pace, as per financial statements.
The capital expenditure level, around $300M per quarter, appears to be primarily for maintenance and expansion of the store network and distribution centers. Given the company's high ROIC and consistent revenue growth, this level of investment seems appropriate to support its competitive moat without overextending cash resources.
Working Capital Dynamics Support Cash Flow
Working capital changes contributed positively in Q2 2026, adding $124.6M to operating cash flow, reversing the negative impact seen in Q3 2025, as reported.
The volatility in working capital changes, from -$276.4M in Q3 2025 to +$267.4M in Q1 2026, suggests that ORLY's cash flow is sensitive to inventory and payables timing. The positive contribution in recent quarters may indicate improved inventory management or favorable supplier terms, which could be a source of cash flow stability going forward.
Aggressive Buybacks Continue
ORLY deployed $1.5B on share repurchases in Q2 2026, up from $793.8M in Q2 2025, reflecting a continued commitment to returning capital, as per the cash flow statement.
The substantial buyback activity, which has been a consistent feature across all quarters, is likely a key driver of EPS growth, as seen in the 10% diluted EPS growth in Q2 2026. However, this strategy relies on strong cash generation and may increase financial leverage, warranting monitoring of debt levels relative to cash flow.
Cumulative Cash Generation Outpaces Earnings
Over the last ten quarters, cumulative operating cash flow of $7.7B exceeded cumulative net income of $6.3B, indicating strong cash conversion, based on reported data.
The persistent gap between operating cash flow and net income, with OCF/NI ratios often above 1.2, suggests that non-cash charges like D&A and favorable working capital changes are boosting cash flow. This divergence underscores the quality of ORLY's earnings and its ability to fund buybacks and growth without straining liquidity.
What Could Invalidate the Base Case
Despite robust cash flow, the Q2 2026 EPS miss and rising SG&A suggest wage inflation could pressure margins, potentially weakening future cash conversion, as per the earnings report.
The strong cash flow metrics may be partially offset by cost pressures, as evidenced by the EPS miss despite solid comps. If wage and insurance costs continue to rise, operating margins could compress, reducing the gap between net income and operating cash flow. Investors should monitor whether these cost pressures persist and whether the company can maintain its high OCF/NI ratio.